Yes, Martin Luther King Jr. Day is a federal holiday, and most banks close

Martin Luther King Jr. Day is observed on the third Monday in January each year. It is a federal holiday, which means the federal government offices close, and most private banks and financial institutions close as well. In 2024, the holiday falls on January 15. In 2025, it falls on January 21.

When banks close on a federal holiday, any transactions you submit that day — including direct deposits, wire transfers, and check deposits — will not process until the next business day. If you are waiting for a refund to arrive by bank transfer, a holiday can delay the deposit by one business day.

The holiday does not stop the IRS, state tax agencies, or insurance companies from processing refunds behind the scenes. It only stops the banks from moving money in and out of accounts. If a refund was scheduled to land on MLK Day itself, it will land the next day instead.

Key Takeaways

  • Martin Luther King Jr. Day is observed on the third Monday in January and is a federal holiday when most banks close.
  • Bank closures on the holiday delay any money transfers by one business day, including tax refunds and insurance refunds sent by direct deposit.
  • The IRS and state tax agencies continue processing refunds on the holiday; only the banks pause incoming and outgoing transfers.
  • If you are tracking a refund expected to arrive on or near MLK Day, add one business day to your timeline.

How a bank holiday affects refund timing

A federal holiday does not stop a government agency or business from preparing a refund. The IRS processes tax returns on MLK Day. State tax departments process state refunds. Insurance companies process claim refunds. What stops is the bank's ability to move money between accounts.

Think of it this way: the refund is ready to go, but the bank's doors are closed. The money sits in the sending account until the bank reopens the next business day. Then it moves into your account. If the refund was supposed to land on Monday, January 15, it lands on Tuesday, January 16 instead.

This matters most if you are counting on a refund to arrive by a specific date. If you need the money on Monday and the refund is scheduled for Monday, plan for Tuesday instead. If the refund was scheduled for Friday before the holiday, it will still arrive Friday — the holiday does not push it back further.

Which banks and financial institutions close on MLK Day

Most major banks close on Martin Luther King Jr. Day. This includes Bank of America, Chase, Wells Fargo, Citibank, and most regional and local banks. Credit unions typically close as well. Online-only banks like Ally and Charles Schwab also close their customer service lines, though some continue limited processing.

If you bank at a smaller or local institution, call ahead or check their website to confirm their holiday schedule. Some very small credit unions or community banks may have different policies. The safest approach is to assume your bank is closed and plan accordingly.

ATMs and online banking portals remain available on the holiday — you can check your balance and see pending transactions. You just cannot move money in or out until the bank reopens.

What to do if your refund is delayed by the holiday

If you submitted a tax return or insurance claim and expected the refund to arrive on MLK Day, the delay is normal and temporary. The money is not lost. It will arrive the next business day.

You can track the status of a federal tax refund using the IRS's "Where's My Refund?" tool on IRS.gov. You enter your Social Security number, filing status, and the exact refund amount. The tool updates once per day and will show you the expected deposit date. If the date shown is MLK Day, expect the money the next day instead.

For state tax refunds, visit your state's tax department website. Most states have a refund tracker similar to the IRS tool. For insurance refunds, contact your insurance company directly or log into your account to see the status.

Planning around MLK Day if you are waiting for money

If you know a refund is coming and MLK Day falls within a few days of the expected arrival, add one business day to your mental timeline. Do not assume the refund will arrive on the holiday itself.

If you submitted a return or claim just before the holiday, the processing time does not change — the agency still takes the same number of business days to review and approve it. The holiday only affects the final step, when the bank transfers the money to you.

If you are waiting for a stimulus payment or government benefit payment that normally arrives by direct deposit, the same rule applies. The payment may be ready, but the bank will not deposit it until the next business day after the holiday.

Other federal holidays that affect bank transfers

Martin Luther King Jr. Day is one of ten federal holidays when banks close. The others are New Year's Day, Presidents' Day (third Monday in February), Memorial Day (last Monday in May), Juneteenth (June 19), Independence Day (July 4), Labor Day (first Monday in September), Columbus Day (second Monday in October), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25).

Each of these holidays can delay a refund by one business day if the refund was scheduled to arrive on that day. Weekends already delay refunds — a refund scheduled for Saturday arrives Monday instead. A holiday on a Monday works the same way: the refund arrives Tuesday.

If a holiday falls on a Friday, refunds scheduled for that day arrive Monday (skipping the weekend). If a holiday falls on a Monday and a refund was scheduled for that Monday, it arrives Tuesday.

Frequently Asked Questions

Will my direct deposit arrive on Martin Luther King Jr. Day?

No. Banks are closed on MLK Day, so direct deposits scheduled for that day will arrive the next business day instead. If your paycheck or refund was supposed to land on the holiday, expect it the next day.

Does the IRS stop processing returns on MLK Day?

No. The IRS processes returns and approves refunds on federal holidays, including MLK Day. The delay happens only when your bank transfers the money to your account — that step is paused until the bank reopens.

Can I withdraw money from an ATM on Martin Luther King Jr. Day?

Yes. ATMs operate 24/7 even when banks are closed. You can withdraw cash and check your balance on the holiday. You just cannot make transfers between accounts or deposit checks until the bank reopens.

What if my refund was supposed to arrive before MLK Day but did not?

Check the status using the IRS "Where's My Refund?" tool or your state's refund tracker. If the tool shows a new expected date after the holiday, the delay is normal. If no date appears or the refund is very late, contact the agency directly to investigate.

Does a bank holiday affect checks I mail in?

A mailed check takes several business days to clear regardless of holidays. The holiday does not speed up or slow down the mail itself, but it does pause processing when the check arrives at the bank. A check that arrives on MLK Day will not be processed until the next business day.